Tag Archives: Bank

Qualitative analysis into liquidity management by SMEs in the UAE (Published)

Small and Medium Enterprises or commonly referred to as SMEs are an important component of any nation. In the UAE, SMEs account for a large bulk of economic trade as well as provide invaluable job opportunities. Liquidity management is predominantly a key component for the long-term sustenance of any business, let alone SMEs. Lack of persistent liquidity could swindle the business model of the SMEs and could have pernicious effect on doing business in the region. The sinister effect of lack of effective liquidity management tools could be disastrous for the industry as a whole. Hence managing liquidity – both long term and short term, is imperative, especially when sources of liquidity are limited. This paper is an attempt to explore liquidity avenues for SMEs and how do SMEs manage their day-to-day liquidity to meet the going concern requirements. The paper will involve qualitative analysis that involves semi structured interviews with certain SMEs to gauge liquidity management by SMEs in the UAE.

Keywords: Bank, Financing, Liquidity Management, SME, UAE

The impact of liquidity on bank profitability: Case of Tunisia (Published)

Liquidity and profitability are two important variables in the banking industry. In this article, we studied. The impact of liquidity on bank profitability in the Tunisian context. We used a sample of 18 banks over the period (2000…2017). We employ 2 models of panel static in the empirical research. We found that (liquid assets / total assets) and (total credits / total deposits) have a positive and significant impact on return on assets (ROA) whereas (current assets / current liabilities) have not significant impact on ROA. Also, we found that (liquid assets / total assets), and (total credits / total deposits) have a negative and significant impact on ROE (return on equity). Whereas (current assets / current liabilities) have not significant impact on ROE.

Keywords: Bank, Liquidity, Profitability, panel

The Impact of Information Systems Investment on Bank Performance in Ghana (Published)

The advancement of technology is a necessity of the current era. Businesses need to adopt and embrace new technologies to provide excellent business operations and services to their customers. This study looks at the impact of information systems investment on bank performance in Ghana. The major objectives are; (1) to determine the types of technology that the banks invest in (2) to find out the level of IS investment in the banks and (3) to determine the relationship between IS investments and bank’s performance. The following hypothesis was proposed and tested statistically “Information systems investment has a positive relationship with bank performance”. This study adopted the survey methodology. Taking into account the purpose of the study and the research hypothesis, this study is comfortably placed within a scientific epistemology of logical positivism. The cases investigated were local banks and foreign banks. The six banks used were named Bank A, Bank B, Bank C, Bank D, Bank E and Bank F respectively for the sake of anonymity. The population for the study was the strategic staff from the six banks all selected at their Head Offices in Greater Accra Region. The findings revealed that, there has been a high rate of investment in the past three years made by the various banks. The findings also revealed that both the foreign banks and the local banks asserted to the fact that, market share, profitability and ROA increases as IS investments are employed in the industry. Subjecting the hypothesis to statistical test also showed that, information systems investment has a positive relationship with bank performance. This study would help bank managers to recognize the importance of information systems investment and its use to gain competitive advantage and increase profit margins.

Keywords: Bank, Information Systems Investment, Performance and Strategic Staff

The Determinants of Consumer Loan; an Insight from Bank XYZ Office Branch ABC (Published)

Banking sector in Indonesia has a market share of around 80% of the entire financial system. The bank has an important function in the economy of a country, namely as a financial intermediary, which collects funds from the public that has a surplus of funds in the form of deposits and redistributes the funds to the people who need funds or fund deficits in the form of credit. In channeling the funds, banks should pay attention to the quality of credit because if in the future there is a problem loan or non-performing loan (NPL), it will harm the bank itself. Bank XYZ is one of Indonesia’s longstanding banks in Indonesia and is also known as a focused and consistent bank in the micro, small and medium enterprises sector with a credit growth of 12.14% in 2017. Loans disbursed or granted are expected to be runs smoothly until the credit is declared complete or paid off, but the potential for risk will always exist, one of them is the risk of default (default) which can lead to an increase in non-performing loans (NPLs) of 2.16% in 2017. The highest NPL credit in the Bank XYZ is in the consumer segment, which is 41%. The research to see the factors that influence the consumer credit NPL of Bank XYZ uses secondary data with the variable of NPL, gender (X1), age (X2), marital status (X3), education (X4), occupation (X5), tenor / time period (X6), collateral value (X7), and the ratio of installments to income (X8). Based on the results of logistic regression analysis, it is known that the variables that affect the NPL of XYZ Bank’s consumer credit are gender (X1),), education (X4), occupation (X5), tenor / time period (X6), at a significant level of 10%.

Keywords: Bank, Non-performing Loan., kredit konsumer, regresi logistik

Determinants of Bank Selection by University Students in Ghana (Published)

Purpose – The study examines the bank selection criteria employed by Ghanaian university students. Design/methodology/approach – We used convenience sampling to select 997 students aged between 15-30 years from Kwame Nkrumah University of Science and Technology. Exploratory factor analysis was first conducted to determine the constructs that measure students’ selection of bank criteria. Using binary logistic regression, the extracted constructs were used as independent variable on the bank patronized. The effects of student demographics on the bank selection criteria was also determined using a multiple linear regression. Findings – The study extracted six constructs that measured bank selection criteria by university students. These were operational competence, external influence, physical evidence, e-banking facilities, convenience and cost of operating bank account. Out these, e-banking facility, convenience and cost of operating bank account, were statistically significant at determining the selection of bank. The department students belonged to (social science or pure science) affected the level of weight placed on cost of operation. Age of respondents and department affected the premium placed on e-banking. Finally, employment status and department affected the level of importance student attached to convenience as a selection criterion. Gender of students had no statistical effect on any of the bank selection criteria.  Originality/value – The reviewed literature showed that, researchers either explored in isolation, bank characteristics influencing bank selection by clients, or client demographic and preference for bank and its characteristics. This study sought to feel this gap by combining the two, to provide a more robust model in explaining students’ selection of bank.

Keywords: Bank, Criteria, Ghana, Selection, Students, University

Bank Capital and Profitability: A Study of Selected Banks in Ghana (Published)

The study investigated the relationship between bank equity capital and profitability by sampling fourteen (14) banks, using the purposive sampling technique, out of the twentyeight (28) universal banks operating in Ghana at the time, with data covering an eleven- year period (2005-2015). The study adopted the panel data methodology to examine the effect of bank capital on profitability. The random-effects Generalised Least Square (GLS) regression was adopted as an estimation technique for the research.  The study revealed that equity capital is significantly and positively related to Net Interest Margin (NIM), and Return-on-Equity (ROE). Bank size is significantly and negatively related to ROE, and insignificantly inversely related to NIM. Regulated bank capital is a disincentive to inclusive financial intermediation in Ghana.

Keywords: Bank, Capital, Equity, Ghana, Profitability, Size

The Application of Accounting System at SMES in Pematangsiantar (Published)

One of the weakness of a small or medium business especially in Pematangsiantar  is that they do not implement an adequate system of financial records or in another word, he does not apply  accounting system in his business. Accounting provides information on the resources available to a firm, the means employed to finance those resources, and the results achieved through their use. Mostly, small and medium enterprises  in Pematangsiantar does not apply the accounting system for their business management because of some problems, there are: the business is a small business, it will spend much money applying accounting system, less knowledge regarding to it

Keywords: Accounting System; Business, Bank, Business Industry, UMKM

The Impact of E-Banking on Efficient Service Delivery to Customers in Nigeria Economy (Published)

The advent of service areas like financial advisory services, funds transfers and international trade among others helps propel Nigeria banks into the development of new and improved service delivery channels. Information and communication technology (ICT) rapidly emerged as the platform for building integrating and communicating effective service to customers. Today in Nigeria servers, personal computers and local / wide area networks have taken a firm foot as the minimum requirement for rendering credible and effective banking services. Adenuga (2003), the recent trends in Information Technology (IT) are becoming central to the process of economic development. IT offers new ways of exchanging information, transacting business, changes the nature of the financial and other services sectors and provides efficient means of using the human and institutional capabilities of countries in both the public and private sectors.  IT can be applied to every conceivable activity; from collecting taxes to bank management, complex scientific and technical problems.

Keywords: Bank, Customers, Economy, Fund Transfer, ICT, services

Bank Profitability, Inflation and Cost Efficiency: A Case of Pakistani Banks (Published)

The study investigates the impact of internal and external factor and macro-economic variables on profitability on commercial banks of Pakistan. Dependent data analysis confirms that the bank size, capitalization, labor productivity, concentration and inflation were significant impact on the bank profitability in Pakistan

Keywords: Bank, Cost Efficiency, Inflation, Pakistan, Profitability Analysis


The study aimed at assessing the product innovation strategies adopted by banking industry in Eldoret, Kenya. The study was guided by the following two objectives; to assess product innovation strategies employed by banks in Eldoret, to establish the relationship between product innovation and growth of banks and to find out the challenges of product innovation strategies implementation and improvement. The study employed a survey research design of 25 banks within Eldoret municipality and targeted the branch managers and the employees in the banks who are 578. A total sample size of 191 respondents was therefore employed in the study. The study employed purposive sampling in selecting the branch managers and stratified sampling in selecting the employees. A questionnaire was used as the main data collection instrument. Descriptive and inferential statistics were both used to analyse and interpret the data. The study found out that market surveys and customers’ feedbacks had effect on product innovation strategies. The study concluded that to a large extent banks innovate new products leading to new customers (new markets). The study recommended that apart from continuous improvement of existing products, it is the responsibility of the banks to come up with new products and services to suit their target market rather than being an adopter of innovation

Keywords: Bank, Eldoret Municipality, Product Innovation, Strategy

A Critical Analysis of Financial Performance of Agricultural Development Bank (Adb, Ghana) (Published)

Until recently, many of the banks in developing countries were state owned or locally established with varied mandates to focus on different sectors of the economy. Some of these state banks are bedevilled with peculiar set of challenges making some of them inefficient and unprofitable and in some instances insolvent. Financial performance analysis is aimed at keeping the banks in checks by highlighting low and high performance areas with the understanding that it will bring about improvement in performance. The PELARI (Profitability, Efficiency, Liquidity, Asset Quality, Risk Measures and Investor analyses) model was developed for analysis by the researchers which is similar to the CAMELS’ rating. Financial ratio analysis is employed in the analysis. Troubled signals models such as the Altman z-score for non-manufacturing companies and risk index were also used to measure risk. The Altman z-score generated for 2011 and 2012 showed a figure of less than 1.1 which put the bank in the distress zone category. It was evident from the analysis that ADB’s focus on agricultural financing is diminishing since a sector analysis of loans and advances indicates that the agriculture sector lost its first position to the services sector which recorded 38% compared with agriculture 29% in 2012. The bank’s liquidity showed a downward trend and slipped further down in 2010 confirming the Ghana Banking Survey (2011) assessment that the bank is illiquid.



Keywords: Analysis, Bank, Development, Financial Performance, Liquidity

Effect of Bank Lending Rate on the Performance of Nigerian Deposit Money Banks (Published)

This study examined the impact of bank lending rate on the performance of Nigerian Deposit Money Banks between 2000 and 2010. It specifically determined the effects of lending rate and monetary policy rate on the performance of Nigerian Deposit Money Banks and analyzed how bank lending rate policy affects the performance of Nigerian deposit money banks. The study utilized secondary data econometrics in a regression, where time-series and quantitative design were combined and estimated. The result confirmed that the lending rate and monetary policy rate has significant and positive effects on the performance of Nigerian deposit money banks. The implication of these is that lending rate and monetary policy rate are true parameter of measuring bank performance. We therefore recommend that government should adopt policies that will help Nigerian deposit money banks to improve on their performance and there is need to strengthen bank lending rate policy through effective and efficient regulation and supervisory framework.

Keywords: Bank, Bank Performance, Co-integration, Financial System, Lending Rate